Global stocks fell Wednesday as technology shares sank after a report said the U.S. plans tighter import controls on companies that share chip-making technology with China. 

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London's FTSE 100 edged 0.1% higher to 8,169.24 as data showed the inflation rate remained steady at the Bank of England’s 2% target in June. 

That hit hopes for a central bank rate cut, though the better-than-expected data pushed the British pound above $1.30 early Wednesday.

Germany’s DAX lost 0.3% to 18,615.00 and the CAC 40 in Paris declined 0.1% to 7,568.69.The future for the S&P 500 sank 0.7% and that for the Dow Jones Industrial Average was down 0.1%. 

A report by Bloomberg that the U.S. plans tighter import controls on companies that share chip-making technology with China pulled technology shares lower.

The unconfirmed report said President Joe Biden is considering using a wide-sweeping regulation, the foreign direct product rule, to further restrict sales of critical chipmaking equipment to China.

The United States has blocked Chinese access to advanced chips and the equipment to make them, citing security concerns, and urged its allies to follow suit. 

Most have strengthened their controls but many companies in the industry continue to do business with China. Shares in Tokyo Electron plunged 7.5%. 

Precision tools maker Disco Corp. sank 4.5% and Lasertec, which makes equipment for inspecting for defects in computer chips, dropped 5%. 

Dutch chip equipment maker ASML Holding NV dived 7.4% in pre-market trading, while Nvidia fell 3.3%. ASML is the world’s only producer of machines that use extreme ultraviolet lithography to make advanced semiconductors. 

In 2023, China became ASML’s second-largest market, accounting for 29% of its revenue as Chinese companies bought up equipment before the licensing requirement took effect. Tokyo's Nikkei 225 index declined 0.4% to 41,097.69. 

Taiwan's Taiex shed 1% as Taiwan Semiconductor Manufacturing Corp. lost 2.4%. 

Markets in Taiwan were rattled by comments by former President Donald Trump to Bloomberg criticizing the self-governed island claimed by Beijing, which the U.S. is obligated by treaty to defense if it is attacked.

“Taiwan should pay us for defense,” Trump said according to a transcript of an interview published by Bloomberg. “Taiwan took our chip business from us, I mean, how stupid are we?” he said.

In currency dealings, the U.S. dollar fell to 156.34 Japanese yen from 158.34 yen on Wednesday. 

It had traded last week near 162 yen but the yen rallied sharply on Friday. 

Reports said the Finance Ministry might have intervened in the currency market Wednesday and that it had stepped in last week, buying nearly 6 trillion yen ($37 billion) to support the yen.

Elsewhere in Asia, Australia’s S&P/ASX 200 advanced 0.7% to 8,057.90 after hitting an all-time high of 8,083.70 during morning trading. South Korea’s Kospi shed 0.8% to 2,843.29. 

Hong Kong’s Hang Seng gained 0.1% to 17,739.41, while the Shanghai Composite index lost 0.5% to 2,962.85.

Traders are awaiting the outcome of a top level policy-setting meeting of the ruling Communist Party, which wraps up on Thursday.

 The closed-door gathering in Beijing is expected to endorse leader Xi Jinping's vision for investing heavily in strengthening China's self-sufficiency in advanced technologies.

On Tuesday, the S&P 500 climbed 0.6% to 5,667.20, setting an all-time high for the 38th time this year. 

The Dow Jones Industrial Average leaped 1.9% to 40,954.48, and the Nasdaq composite lagged with a gain of 0.2% to 18,509.34, as the stars dimmed for some of the year's biggest winners. 

A report showed sales at U.S. retailers held firm last month despite economists’ expectations for a decline. Still, many market players believe inflation is slowing enough to convince the Federal Reserve to begin cutting interest rates soon. 

The Fed has been keeping its main interest rate at the highest level in more than two decades in hopes of slowing the economy just enough to get inflation fully under control.

In other dealings, U.S. benchmark crude oil added 36 cents to $81.12 per barrel in electronic trading on the New York Mercantile Exchange.

Brent crude, the international standard, picked up 23 cents to $83.96 per barrel.The euro rose to $1.0934 from $1.0897.